Insights

Amazon Increases Cost of Prime Day Promotions By 50%

Promotion-Price-Increase

In preparation for the fourth annual Prime Day, Amazon has been heavily encouraging sellers and brands to purchase advertisements and promotions for their sales event. While advertising during Prime Day may feel like being a very small fish in an impossibly large pond, at least it didn’t directly cost anything during 2015 and 2016. During 2017, Amazon introduced a $500 ticket price to enter said pond, and this year, the entry fee was increased to $750, according to a report by CNBC. This is in stark contrast to running a Lightning Deal on an average day, which costs $150 — or five times less than Prime Day 2018.


This fee is specifically for promoting a product via a Lightning Deal, which is a special type of Amazon promotion that drastically lowers the price of a product for a short period of time. Lightning Deals are the keystone of Prime Day — discounted products are featured on the homepage, constantly rotating through different offerings as deals sell out or expire.


Read more about Lightning Deals and Amazon’s other promotion options here.


What brands should be considering

Prime Day continues to grow year over year, and sales estimates for 2018 are sitting well over $3B. With such a massive increase in site traffic comes a surge in organic sales for well-established sellers and brands on the Amazon marketplace, whether or not they are purchasing expensive promotions.


While investing in promotions can be effective under the right circumstances, a unified inbound marketing approach is what wins the day for brands. Brands should think of Prime Day as an opportunity to bring all their marketing efforts together for a single moment — pushing traffic from everywhere (social, web, email) to Amazon.

For more detailed recommendations paired with a detailed look at the history of Amazon’s annual sales event, read A Closer Look at Prime Day 2018.



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